Investing.com - The pound edged higher against the U.S. dollar on Wednesday, but the pair looked likely to remain trapped in a tight range as investors awaited a speech by Federal Reserve Chairman Ben Bernanke and more details of European Central Bank plans to stem the debt crisis in the region.
GBP/USD hit 1.5847 during European afternoon trade, the pair’s highest since August 24; the pair subsequently consolidated at 1.5846, gaining 0.18%.
Cable was likely to find support at 1.5731, Tuesday’s low and resistance at 1.5881, the high of August 22.
Market sentiment continued to be underpinned by expectations that the ECB is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
Earlier Wednesday, Italy saw borrowing costs decline to the lowest level since March after it auctioned EUR9 billion of six-month government bonds, reflecting investor confidence that the ECB will soon act to lower high euro zone peripheral bond yields.
Meanwhile, investors were anticipating a speech by the Federal Reserve chairman at the central bank’s annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the Fed is to implementing more stimulus measures.
The outlook for sterling remained fragile as concerns over broad economic weakness kept alive expectations for another round of monetary easing by the Bank of England.
The pound was higher against the euro, with EUR/GBP shedding 0.29% to hit 0.7917.
Later in the day, the U.S. was to release revised data on second quarter economic growth, as well as industry data on pending home sales.
GBP/USD hit 1.5847 during European afternoon trade, the pair’s highest since August 24; the pair subsequently consolidated at 1.5846, gaining 0.18%.
Cable was likely to find support at 1.5731, Tuesday’s low and resistance at 1.5881, the high of August 22.
Market sentiment continued to be underpinned by expectations that the ECB is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
Earlier Wednesday, Italy saw borrowing costs decline to the lowest level since March after it auctioned EUR9 billion of six-month government bonds, reflecting investor confidence that the ECB will soon act to lower high euro zone peripheral bond yields.
Meanwhile, investors were anticipating a speech by the Federal Reserve chairman at the central bank’s annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the Fed is to implementing more stimulus measures.
The outlook for sterling remained fragile as concerns over broad economic weakness kept alive expectations for another round of monetary easing by the Bank of England.
The pound was higher against the euro, with EUR/GBP shedding 0.29% to hit 0.7917.
Later in the day, the U.S. was to release revised data on second quarter economic growth, as well as industry data on pending home sales.